Faber : Maybe, gold at this level is a better buy than it was at $300 per ounce in 2001.

Tim: At first glance, the idea that gold priced at over $1,100 an ounce is "a better buy" than when the metal traded at about a quarter of that price seems reposterous. But, when you think about it just a little bit (i.e., what constitutes a "better buy" and how the fundamental factors have now swung so decidedly in gold's favor), maybe it isn't a crazy idea at all.

I wouldn't be surprised if, in another eight years - in 2017 - the yellow metal fetches $5,000 an ounce or more which, by my math, would make it a better buy. Gold may not rise as much against other currencies, but, after almost a decade of trillion dollar deficits, that almost seems like a slam dunk when the measuring stick is the U.S. dollar.

Compare yesterdays quotes from Yellen, Kohn & Bernanke with what Faber said.....In the context of these remarlks i just couldn´t resist to post the following video "highlighting" Bernanke´s past track record in seeing the obvious.... Gold is a not the way to get rich but is a wonderful way to PROTECT your "puchasing power" with a very long track record ( 750 Years Of Real Gold Prices )

“Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It as no utility. Anyone watching from Mars would be scratching their head.”

Warren Buffett

At least the quote is funny but after taking a look at the following link "Our Governments Are Insolvent" it is easy to see why Buffet is wrong. Wouldn´t be the first time.....At least one quote where he is not talking his book .... ;-) This Chart is clearly telling what is going on.......I´m still thinking that the Dow/Goldratio reached in 1980 is not "unrealistic" over time......

Let’s start with last week’s attention-grabbing headline in the Wall Street Journal: “White House Aims to Cut Deficit with TARP Cash.”

The White House, we are told, won’t be using about $200 billion of the $700 billion authorized under the Treasury’s Troubled Asset Relief Program, a lifeline for ailing banks. Instead it plans to use money never borrowed, never spent, that nonetheless increased the projected 2010 deficit, to narrow that projection of $1.4 trillion, according to a Congressional Budget Office estimate.

This un-borrowed, un-spent money qualifies as deficit reduction?

First, Treasury Secretary Tim Geithner took it upon himself to outline “The Road Ahead for Asia’s Economies” in a Nov. 11 Wall Street Journal op-ed.

For Asia’s emerging economies, Geithner’s high road entails strengthening “their social safety nets through sustainable health and retirement-benefit schemes, thus reducing the need for high precautionary saving that contributes to global imbalances.”

I’m glad he used the word “sustainable,” because the U.S.-style Ponzi scheme known as the Social Security Trust Fund is anything but. Taxes on today’s workers provide the benefits for today’s retirees. There is no saving, no trust fund and very little trust that there will be anything left when younger generations retire.

Gold won't go down in value as long as the global crisis continues at the present level. But my guess is that gold price will go down as it has already started and it was marked by the beginning of the real estate market revival. _____________________________________________Where To Sell Gold Jewelry